Do apprentices pay tax and National Insurance?

When you start an apprenticeship you’re an employee, so tax works exactly the same as any other job. Many apprentices earn little enough that they pay little or no tax.

Income Tax

You only pay Income Tax on what you earn above your Personal Allowance. For most people that’s £12,570 a year. Outside Scotland, the bands for 2026 to 2027 start like this:

Band	Income	Rate
Personal Allowance	Up to £12,570	0%
Basic rate	£12,571 to £50,270	20%
Higher rate	£50,271 to £125,140	40%

If you live in Scotland, the bands are different, so check GOV.UK’s Scottish rates.

National Insurance

You pay Class 1 National Insurance on your wages. For 2026 to 2027:

Your pay	Rate
Under £242 a week	0%
£242 to £967 a week	8%
Over £967 a week	2%

Your employer takes it from your pay before you get paid, and your payslip shows how much.

You might hear that apprentices “don’t pay National Insurance”. That’s misleading. The government says employers may not have to pay their share of National Insurance for apprentices under 25 earning under £967 a week, but the apprentice still pays theirs.

A worked example

Say you earn £20,000 a year, like a starting apprentice at United Utilities, and you live outside Scotland with a standard tax code:

• The first £12,570 is tax-free.
• You pay 20% on the remaining £7,430, which is £1,486 a year in Income Tax.
• National Insurance depends on your weekly or monthly pay, so check your payslip.

On a lower salary, like the £8.00 an hour minimum for 30 hours a week, you’d earn under the Personal Allowance and pay no Income Tax at all.

Things to check on your payslip

• Your tax code. If it looks wrong, or you’re on an emergency code, HMRC can fix it.
• Your National Insurance number. Make sure your employer has it.
• Your pay. Make sure you’re paid at least the apprentice minimum wage for every hour, including training time.